Polish copper giant KGHM struck a USD 2.5 billion revolving credit deal with an international consortium of banks on July 11, KGHM said in a market filing.

The deal was struck for the period of five years and can be prolonged twice, each time by a year, at KGHM's request, the firm said. KGHM can draw funds from the credit facility through up to 25 renewable tranches.

The firm will use the means for general corporate goals including investment outlays as well as to refinance USD 700 million debt of the KGHM International unit, the filing read.

The list of investment projects includes, among others: exploration and research works, modernization of Legnica copperworks in southwestern Poland and development of foreign mines (Sierra Gorda in Chile, Victoria and Afton Ajax in Canada), a separate press release showed.

Interest on the loan will be LIBOR-based, plus a margin whose level will depend on the firm's net debt/EBITDA multiple, KGHM indicated in the filing.

The terms "position KGHM's financing among the most competitive transactions of the type recently arranged on the market," CFO Jaroslaw Romanowski said in the press statement.